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The
AICPA and the London-based Chartered Institute of Management
Accountants (CIMA) are proposing forming a joint venture to develop
and promote a new global management accounting designation. The
joint venture is designed to give management accounting a higher
profile in the United States, advance the science of management
accounting worldwide, and promote the U.S. CPA designation as a
worldwide standard of professional excellence in accounting,
according to a press release from the organizations.

The
AICPA, founded in 1887, is the world’s largest association
representing the accounting profession, with nearly 370,000 members
in 128 countries. CIMA, founded in 1919, is the world’s largest
professional body of management accountants, with 183,000 members
and students in 168 countries. The proposed joint venture would
combine the strength of the AICPA in North America with CIMA’s
footprint in Europe, the Middle East, Africa, Asia and elsewhere.
Together, the organizations represent more than 550,000 members and
students.

“This
joint venture would help produce and recognize professionals around
the world committed to excellence in management accounting,
enterprise and performance strategy,” AICPA President and CEO Barry
Melancon said in a press release.

“This
agreement would give CIMA and AICPA truly global reach," said
CIMA President George Glass. “The new venture would have an
unrivaled depth of resources to meet the needs of both organizations
and their individual members around the world.”

The
pathways for obtaining the new credential would vary. Recognizing
the significant educational and professional background of U.S.
CPAs, AICPA voting members with at least three years working in
management accounting or a financial management role would qualify
for an accelerated route to obtaining the new designation.
Non-voting AICPA members in the United States would not be eligible
to obtain the credential.

CIMA
Chief Executive Charles Tilley said: “Management accountants provide
the expertise and information that enable organizations to make
business-critical decisions. Professionals who earn the new
designation will have achieved proficiency and leadership in
management accounting.”

The
proposal will be vetted through the AICPA’s governance process. It
has been reviewed by the AICPA Board of Directors, which approved
advancing the proposal to the Institute’s regional Council meetings
this month to gain input.

The
initiative is subject to approval by the governing bodies of both
organizations and will be voted on separately by the CIMA and AICPA
councils in May, according to the press release. If approved, the
joint venture would launch in 2012.

Under
the terms of the proposed agreement, CIMA and the AICPA would create
a nonprofit joint venture called the Association of International
Certified Professional Accountants. The AICPA would own 60% of the
entity; CIMA would own 40%; and the board of directors would be
split evenly between the organizations, with CIMA and the AICPA
rotating in the role of chairman.

Both
the AICPA and CIMA would continue to exist as stand-alone membership
organizations. The joint venture would authorize issuance of the
designation on behalf of each membership organization. The joint
venture is intended to become self-supporting within three years.

Approximately
45% of AICPA members practice in business, industry or government.
The Institute’s Business and Industry Executive Committee has long
supported some form of recognition to further underscore the unique
competencies of CPAs working in business. The AICPA said it used a
long-standing decision-tree model developed by the National
Accreditation Commission to assess whether to build such a
designation in-house. Based on the analysis, the preferred option
was to form an accreditation alliance, and CIMA was identified as
the most credible partner, given it is already recognized for
issuing world-leading designations in management accounting. The
proposal aims to fulfill AICPA strategic objectives related to
serving the public interest through activities driven by a deep
commitment to ongoing professional competency development and
advancing the U.S. CPA worldwide.

“This
joint venture is an important step in advancing our ongoing efforts
to further enhance the worldwide awareness of the U.S. CPA,”
Melancon said, “while creating a global value proposition for our
members in business and industry.”

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